893.50 Recovery/6–2448: Telegram
The Secretary of State to
the Ambassador in China (Stuart)
Washington, June 24, 1948—11
p.m.
923. Following is text Article III (Improvement of Commercial Relations)
agreed by Dept, ECA and Commerce:
- “1. The Government of China undertakes to make all
practicable efforts to improve commercial relations with
other countries, including measures to improve the
conditions affecting the carrying on of foreign trade by
private enterprises in China.
- 2. The Government of China, in carrying out the provisions
of paragraph 1 of this Article, will, among other measures,
administer such import and exchange controls as are, or may
be, made necessary by the exigencies of China’s
international balance of payments and the foreign exchange
resources available to the Government of China, in a
uniform, fair and equitable manner.
- 3. The Government of the United States of America and the
Government of China will consult, upon the request of
either, regarding any matter relating to the application of
the provisions of this Article, including:
- (a)
- measures for improving the efficiency of the
administrative agencies and organs of the Government
of China charged with the duty of supervising the
operation of laws, regulations, rules
[Page 572]
and
administrative and judicial decisions affecting the
importation or exportation of goods or the transfer
of payment therefor;
- (b)
- measures giving effect to the policy statement of
the President of the Executive Yuan of the Republic
of China, issued to the public on August 13,
1947,28
concerning the investment of foreign capital in
China, and assuring fair, equitable and
nondiscriminatory treatment to enterprises in China
in which American investors now or hereafter
participate;
- (c)
- the effect on commercial relations with the United
States of America of the operations of enterprises
owned or controlled by the Government of China which
may be engaged in the conduct of foreign
trade.”
Request Embassy’s immediate appraisal this language, particularly re
possibility, if any, that it may be used as point of attack ChiGovt and
U. S. by opposition groups within Kmt China and by Communists, and
seriousneses such attack. If Embassy has no important reservations re
this text, please transmit Fonmin immediately. Dept’s comments will
follow shortly.29
